Leaving a job after several years? You may be owed gratuity — a lump-sum reward for long service that’s tax-free up to ₹20 lakh. Use this free gratuity calculator to find out exactly how much you’re entitled to.
Gratuity Calculator
Find out how much gratuity you're owed when you leave a job. Gratuity is a thank-you payment for long service — and it's tax-free up to ₹20 lakh.
Your gratuity amount
₹0
Based on 15 days' salary per year of service
How this works: for employees covered by the Payment of Gratuity Act, gratuity = (15 × last drawn Basic+DA × years of service) ÷ 26. A part-year over 6 months counts as a full year. You're eligible after 5 years of continuous service (waived on death/disability). Gratuity is tax-free up to ₹20 lakh. Some non-covered employers use a ÷30 formula, so your actual amount may differ. Educational estimate, not advice. See your full take-home salary breakdown too.
How gratuity is calculated
For employees covered by the Payment of Gratuity Act, the formula is:
Gratuity = (15 × last drawn Basic+DA × years of service) ÷ 26
The “15/26” represents 15 days of salary for each completed year of service (26 being the assumed working days in a month). A part-year of more than 6 months counts as a full year.
Who is eligible?
- You need 5 years of continuous service with the same employer.
- Payable whether you resign or retire.
- The 5-year condition is waived in case of death or disability.
Is gratuity taxable?
Gratuity is tax-free up to ₹20 lakh over your lifetime; anything above that is taxed at your slab rate. It’s a meaningful part of your total compensation — see how the rest of your pay breaks down with our take-home salary calculator, and put your gratuity to work using the SIP calculator.
Frequently asked questions
Who is eligible for gratuity?
You generally need 5 years of continuous service with the same employer. The condition is waived on death or disability.
Is gratuity taxable?
It’s tax-free up to ₹20 lakh over your lifetime; any amount above that is taxable per your slab.
Do I get gratuity if I resign?
Yes — as long as you’ve completed 5 years of continuous service, gratuity is payable whether you resign or retire.
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